MF: contributions for December are no longer deductible
Entrepreneurs who have to pay the health contribution for December in January will no longer be able to deduct it from their taxes. This has been confirmed by the Ministry of Finance in response to media questions.
– The provisions of the Polish Order will radically change the manner of paying and settling health care contributions. The amount of the contribution will change, as well as the possibility of its deduction from tax will disappear. As a consequence, the fiscal burden on entrepreneurs will increase. All this will happen at the beginning of January. Therefore, a doubt has arisen as to the contribution paid in January but concerning December. The Ministry of Finance has clarified that this contribution will not be deductible, because the key issue here is the date of payment of the contribution. Since the contribution will be payable in 2022, and since 1 January regulations abolishing the option to deduct the contribution from tax will come into force – it will not be possible to recognise it in tax settlements – explains Adam Allen, tax adviser, partner at Thedy & Partners.